Prasham (Proprietor) 20 November 2013

Changing property ownership during a case

I am a guarantor in my nephew's loan. The loan was given against the machinery & stock. Now he isn't paying the money to bank as he's almost bankrupt. So the bank filed a recovery suite in the civil court.

Civil court transferred the case to Nominee Court which gave decision in favour of bank. The decision was Ex Party (neither our lawyers nor we were present). Now we have filed a review petition for opening the case again as there were many technical issues including the judgement being Ex Party. We hope that the case will be re-opened due to certain reasons.

What I want to know is that since the case will be restarted and the old order as well as notices will become null and void, can I change the ownership of my Properties, FDs etc while the case in being trialed in the court ?

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4 Replies

BAALASUBRAMANNYAMM (Advocate) 20 November 2013

When once a civil case has been instituted against you( or your company or your machinery & stock what ever it may be) for recovery, the law would not be permitted you to change the ownership. You, being a guarantor, held liable in case of decree of the said suit.

Rama chary Rachakonda (Secunderabad/Highcourt practice watsapp no.9989324294 ) 20 November 2013

change the ownership is not possible, when cases are pending.

Prasham (Proprietor) 20 November 2013

I have sold many properties after the case was started in 2004 but never ever I've been stopped by anyone. I was under the impression that once the case will re-open, I'll be free to make changes in the properties which are in my name presently.

Jeevan (Proprietor) 20 November 2013

With reference to what you have stated in your query, we hope you have not created any secured interest to the Bank in your property. That means you have not mortgaged your property, being a guarantor, with the Bank. If such is the case, We think you are free too decide whatever you like to do with your property. If you like to have any assistance regarding the referred case you can visit us at www.securitisationhelp.com and write to us.